SR 08-08-2017 8A
City Council Report
City Council Meeting: August 8, 2017
Agenda Item: 8.A
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Subject: City Services Building Guaranteed Maximum Price for Construction Services
and Award for Construction Management Services
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a Guaranteed Maximum
Price (GMP) second amendment to Design-Build Contract No. 10051 (CCS) for
construction services with Hathaway Dinwiddie Construction Company, a
California-based company, in the amount of $61,843,526 (includes 2.4%
contingency) for a new total amount not to exceed $70,600,507 for the City
Services Building Project (CSB);
2. Award RFP #SP2250 to GKK Works, a California-based company, to provide
construction management services for the City Services Building Project;
3. Authorize the City Manager to negotiate and execute an agreement with GKK
Works in an amount not to exceed $887,920 (includes 10% contingency);
4. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority; and
5. Authorize budget changes as outlined in the Financial Impacts & Budget
Actions section of this report.
Executive Summary
The City Services Building (CSB) Project brings nearly all core municipal operations
onto one City Hall campus as envisioned in the Civic Center Specific Plan. The
investment in this new building meets three main objectives:
Offers a one-stop hub to better serve the community. The CSB would bring
departments and vital public counter functions under one roof to streamline
services in one location.
Eliminates all existing city office space leases and consolidates municipal
operations onto city-owned land. City Hall was constructed in 1938 and in 79
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years, the services that the City provides to the community has expanded and
outgrown the historic building. For several decades, city divisions have been
spread throughout the downtown, leasing space. With the construction of the
City Services Building, the City will eliminate leases saving as much as $10
million annually and bring 240 staff under one roof.
Achieves a strong return on investment for the City both economically and
environmentally with a resource efficient structure. The building is a long
term investment that is designed to streamline operational functionality and to
be resource efficient. It is a Living Building and will not have a water or electric
bill because it will produce the energy and water it consumes on site.
The total cost of the City Services Building Project is anticipated to be $76,760,000.
Staff proposes to fund the City Services Building Project using $76,760,000 million in
bond proceeds as proposed in Item 9A of tonight’s Council Meeting agenda. The
detailed breakdown of costs related to the CSB is explained in Table 1 of this report.
The GMP Amendment 2 to Design-Build Contract No. 10051 (CCS) for construction
services with Hathaway Dinwiddie Construction Company would be the final of a three
phased design-build approach for the City Services Building Project:
Phase I: Feasibility analysis, concept design and cost estimates
Phase II: Design services including schematic design, design development,
construction documents, project management, and cost estimating
Phase III: Construction services including construction administration
Staff recommends executing the GMP Amendment 2 for City Services Building
construction with Hathaway Dinwiddie Construction Company in the amount of
$61,843,526 (includes 2.4% contingency) for a total contract amount not to exceed
$70,600,507. The total contract amount includes $1,310,750 for previously authorized
design services and $600,000 in newly requested construction services for City Hall
improvements. In addition, staff recommends GKK Works to provide construction
management services for the City Services Building Project in an amount not to exceed
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$887,920 (includes 10% contingency).
Background
On March 27, 2012 (Attachment A), Council authorized staff to seek proposals for the
feasibility, initial design and cost estimates for a City Services Building located on the
selected site east of City Hall.
On October 8, 2013 (Attachment B), staff issued an Information Item detailing the
proposed design-build delivery method for the design and construction of the City
Services Building. This approach offered phased implementation, starting with a
feasibility analysis, concept design and cost estimation, and an integrated project team
of builders, designers and specialty consultants to provide expertise throughout the
entire project delivery timeline.
On April 8, 2014 (Attachment C), Council authorized the City Manager to negotiate and
execute a professional services agreement with Hathaway Dinwiddie Construction
Company for the feasibility analysis, concept design and cost estimates for the City
Services Building Project. This agreement was the first of three phases in the design-
build process.
On January 27, 2015 (Attachment D), Council reviewed a feasibility report on the City
Services Building Project and authorized the City Manager to negotiate a Guaranteed
Maximum Price with design-build contractor Hathaway Dinwiddie Construction
Company for design services including Living Building Challenge certification.
On April 28, 2015 (Attachment E), Council authorized the City Manager to execute a
contract with Hathaway Dinwiddie Construction Company for design services for the
City Services Building Project in an amount not to exceed $7,064,501. This agreement
was the second of three phases in the design-build process.
On May 24, 2016 (Attachment F), Council reviewed and commented on the schematic
design and cost estimates for the City Services Building, and directed staff to proceed
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with design development.
On November 1, 2016 (Attachment G), Council authorized the City Manager to
negotiate and execute a first contract modification to Agreement #10051 (CCS) with
Hathaway Dinwiddie Construction Company to incorporate additional design services in
an amended Guaranteed Maximum Price for design with a new total amount not to
exceed $8,756,981. Staff expanded design services to include adjustments to the City
Services Building program, provide technical design services to move the City’s Traffic
Management Center to the building, modify the courtyard circulation, design additional
environmental systems for the pasteurization of waste materials produced in the
building and to provide an additional CEQA historic resources technical report for the
project. Additionally, staff increased the design-build scope of work to include a tenant
improvement project in the South Wing of City Hall to be done after completion of the
City Services Building construction, and to design the essential fire and life safety
alterations in City Hall as required by code officials.
On January 24, 2017 (Attachment H), Council reviewed the Civic Center Specific Plan
EIR Sixth Addendum with the Final EIR and adopted a resolution to amend the Civic
Center Specific Plan to account for the relocation of the City Services Building to the
rear of the Santa Monica City Hall.
Discussion
Santa Monica’s City Hall was originally constructed in 1939 and the building serves as
an outstanding example of the Moderne style of architecture, popular throughout Los
Angeles in the 1930s. City Hall is listed in the California Register of Historic Resources
and as a Santa Monica Historic Landmark. City Hall was built during a time when the
city’s population was roughly half its current size and virtually the entire City workforce
was housed in one building. The City’s population and scope of local municipal
services have expanded significantly in the intervening three-quarters of a century.
Since adoption in 2005 of an updated Civic Center Specific Plan, it has been a planned
vision to create a more cohesive Civic Campus that better serves the public and
centralizes staff. A City Services Building has long been planned to be constructed
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immediately adjacent to City Hall. The new building would be approximately 50,000
square feet, including three stories plus a basement and 45 feet above grade.
The City Services Building Project (CSB) would result in substantial future savings by
eliminating numerous leased office spaces for approximately 240 City staff and would
realize the vision for a centralized Civic Campus. The CSB would bring departments
and vital public counter functions under one roof to streamline services into a one-stop
location. By creating a consolidated workplace, staff’s ability to collaborate would
improve along with staff’s increased efficiency and productivity to serve the community.
Today municipal operations are spread throughout Santa Monica, but in the future there
would be only two hubs of operation: the City Hall Civic Campus and City Yards.
The proposed building’s design is subtle and intended to accent City Hall’s eastern
edge in a quiet emerging manner that will reflect and respect City Hall. Approvals by the
Planning Commission and the Landmarks Commission have been received for the
project.
The new building’s ground floor was thoughtfully designed to achieve an improved
public experience. The design incorporates advanced acoustics and thermal comfort for
the health and wellbeing of its visitors and occupants. City services consolidated in the
space to serve the public in one location include finance, utilities, parking, plan check,
permits and civil land development. The CSB design would also address critical utilities
upgrades and routing that feed City Hall, the Public Safety Facility and the new building.
The CSB would serve as an essential services building, which means it would be fully
operational during emergencies and disasters.
The City anticipates using annual lease savings to offset the cost of the lease revenue
bonds that would be issued to pay for the CSB. Annual lease savings would meet and
exceed the annual costs of debt service during the 30-year financing term. The CSB is
designed to meet Living Building Challenge certification and would be a net zero energy
and net zero water building. The design would address the realities of climate change
and drought, and its success would demonstrate to the region and the world what is
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possible by regenerative building design and construction.
The CSB would fulfill multifaceted community goals and CCSP goals by:
Being designed sensitively in context to the historic and landmarked City Hall,
and accomplishing improvements to the Civic Core as intended by the Civic
Center Specific Plan
Integrating more public counter services into the City Hall location and improving
the overall customer and community experience
Advancing the Council’s sustainability commitment as worldwide environmental
leaders by providing a model of sustainable design and construction
Providing taxpayer savings over its 100-year useful lifespan by eliminating
expensive office space lease agreements, incurring zero utility fees which result
in long-term net savings, and providing a net positive environmental benefit by
harvesting its own energy and water onsite
The bond amount of $76,760,000 million, which is also before the Council for approval,
would be used to fund the CSB. The detailed breakdown of costs related is explained
below in Table 1. The updated cost of the City Services Building has been revised from
previous estimates to include $760,000 for the City-mandated allocation to the Percent
for Art program, and $1,195,251 in additional contingency reflecting available bond
proceeds.
Table 1: Cost Breakdown for City Services Building Project in the Civic Campus Program.
Description Council Date City Services Building
Feasibility Study 4/8/2014 $ 258,000*
Design-Build: Design Services 4/28/2015 $ 7,064,501*
Design-Build Amendment 1:
Additional Design Services 11/1/2016 $ 381,729*
Design-Build Amendment 2:
Construction GMP (CSB) 8/8/2017 $ 61,243,526
Direct Owner Costs Various $ 7,052,244*
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Percent For Art TBD $ 760,000
Total $ 76,760,000
* Funding previously allocated. Only $772,000 of Direct Owner Costs were previously allocated.
Hathaway Dinwiddie contract includes $1,910,750 for City Hall improvements not included in the total
CSB project cost.
Alternatives
Members of the community have suggested that, as an alternative to constructing the
City Services Building behind City Hall, the City consider purchasing the historic Post
Office Building at 1248 Fifth Street and build it out to accommodate City staff currently
occupying leased office space. Based on the City’s preliminary evaluation, this option is
not feasible. Below is a comparison of the two projects:
Post Office Building City Services Building
Current floor area 33,000 sq. ft. N/A
Entitled build out size: 48,458 sq. ft. 50,200 sq. ft.
Total occupants at build out: 54 240
The Post Office Building is a registered historic landmark with requirements that limit
how it may be developed. It includes the main floor and a basement level that total
approximately 33,000 square feet. The main lobby of the building, which is
approximately 3,500 sq. ft., is a historically significant component of the building that
cannot be significantly altered, limiting the amount of usable current floor area to under
30,000 sq. ft. The current entitlements would allow for an additional 15,000 sq. ft.
bringing the total usable floor area to approximately 45,000 sq. ft. at build out. In order
to design usable office space in the basement level, significant modifications would
need to be made to allow access to natural light, which would likely further limit the
available floor area of the building. As currently permitted, the building is designed to
house 54 people and would have 25 onsite parking spaces upon completion. The cost
for the City to purchase the Post Office Building is currently unknown. The building was
purchased for $25 million in 2013. With the current entitlements and increases in
property value over the past 4 years, it is estimated that the purchase price would
exceed $30 million today.
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The planned City Services Building adjacent to City Hall is a 50,200 sq. ft. building that
would house City staff who currently occupy leased space in several buildings in various
locations in Santa Monica. In total, the new building would accommodate 240 City staff.
The project is intended to centralize City functions in one location to significantly
improve convenience, efficiency and customer service. The building would be funded
using lease revenue bonds, which would be paid using the funds currently allocated to
pay for leased office space. However, the amount of funding available would be based
on the number of employees that could be relocated from current leased space to the
new location. Additionally, the funds invested to date of close to $10M would be lost and
would also need to be considered in the total costs of an alternative project.
It is very unlikely that the Post Office Building could accommodate 240 City staff at full
build out, due to the smaller total usable floor space. There are significant restrictions on
modifications made to buildings with landmark status that would generate significant
challenges. Even under the best of circumstances, the separated lobby and the
basement condition at the Post Office Building would make it difficult to create
conditions that would accommodate all of the relocated City staff. The existing permitted
plans allow for just 54 occupants. In order to increase that number to allow for even 100
occupants the entire space would need to be redesigned and new permits would need
to be obtained, which would add to the cost of the project. In comparison, the CSB
design can accommodate 240 staff because it is an open plan design with natural light
and ventilation and would be built to maximize the efficient use of space.
The cost to complete a full redesign and construction of the Post Office Building has not
been evaluated because the constraints on the site and the City’s ability to fund its
purchase and construction, as noted above, make it clear that it is not a feasible option
to replace the City Services Building project. To summarize, not all City staff currently in
leased office space could be adequately housed in the Post Office Building, requiring
the City to continue leasing space for some functions. It would not centralize currently
disparate City functions in one location because some of those functions would have to
remain at City Hall and others in leased space. The small amount of parking on the site
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after build out would require City staff to park in other locations in the downtown,
impacting the parking supply in the area. This represents an expensive option that
would maintain the current status quo with regard to location of City staff and inefficient
service delivery to the public. As such, it would not provide benefits to the community
through a central Civic Campus improving customer service, operational efficiency and
cost savings that would be achieved by proceeding with the City Services Building
project as currently proposed.
Consultant Selection - Construction Management
On June 2, 2017, the City issued a Request for Proposals RFP #SP2250 to provide
construction management services for the City Services Building Project. The RFP was
posted on the City’s online bidding site, and notices were advertised in the Santa
Monica Daily Press in accordance with the City Charter and Municipal Code provisions.
A total of 50 vendors downloaded the RFP. The City received and publicly opened
seven proposals on June 14, 2017. Responses to the RFP were reviewed by a
selection panel of staff from the Public Works Department.
List of proposals received:
Cumming
Griffin Structures
PMCS Group, Inc.
Arcadis
GKK Works
Vanir
Civil Source
Evaluation was based on the following selection criteria: technical competence, staffing
capability, project approach and planning, past performance, dispute resolution, quality
control, cost control, customer service, and the cost of services. Based on this criteria
and criteria in SMMC 2.24.073, staff recommends GKK Works as the best qualified firm
to provide construction management services for the City Services Building Project. The
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GKK Works team has extensive knowledge and experience on numerous design-build
construction projects involving new municipal building construction. They have also
successfully managed projects that included essential services buildings, net zero
energy programs, and complex water systems requiring close coordination with the
Regional Water Quality Control Board and the Los Angeles County Department of
Public Health.
Next Steps
Upon Council approval of the GMP for construction and issuance of the lease-revenue
bonds, staff anticipates the following project timeline:
Site preparation and utility relocation work - September 2017
Start of full construction work - January 2018
Complete construction - April 2020
Financial Impacts and Budget Actions
The proposed bond amount of $76,760,000 million would be used to fund the City
Services Building Project. The GMP Amendment 2 to be approved is for construction
services with Hathaway Dinwiddie Construction Company in the amount of $61,843,526
(includes 2.4% contingency) for a new total amount not to exceed $70,600,507. Funds
are available in the FY 2017-18 Capital Improvement Program budget. Staff requests a
budget transfer of $600,000 from account C014083.589000 (City Services Building) to
account C019215.589000 (City Hall South Wing). The contract will be charged as
follows: $61,243,526 to C014083.589000 and $600,000 to C019215.589000.
The construction management agreement to be awarded to GKK Works is for an
amount not to exceed $887,920 (includes 10% contingency). Funds are identified in the
FY 2017-18 Capital Improvement Program budget in account C014083.589000.
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Prepared By: Christopher Dishlip, Civil Engineer
Approved
Forwarded to Council
Attachments:
A. March 27, 2012 Staff Report (Weblink)
B. October 8, 2013 Staff Report
C. April 8, 2014 Staff Report (Weblink)
D. January 27, 2015 Staff Report (Weblink)
E. April 28, 2015 Staff Report (Weblink)
F. May 24, 2016 Staff Report (Weblink)
G. November 1, 2016 Staff Report (Weblink)
H. January 24, 2017 Staff Report (Weblink)
I. Oaks Form Hathaway Dinwiddie
J. Oaks Form GKK Works
K. Powerpoint Presentation
Appendix
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City of Santa Monica | Construction Management Services For City Services Building Project | 06.14.17 41
Phillip A. Vogt
gkkworks
Praful Kulkarni, David Hunt
Praful Kulkarni, David Hunt
Project Director
06.14.17
pvogt@gkkworks.com 626.666.6906 ext.2004
8/9/2017City of Santa Monica | City Services Building |
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CITY SERVICES BUILDING
Authorize amendment to Design-Build Contract
for construction services with Hathaway
Dinwiddie Construction Company
Award GKK Works construction management
services contract
8/9/2017City of Santa Monica | City Services Building |
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City Services Building
Description Council Date City Services Building
Feasibility Study 4/8/2014 $ 258,000 *
Design-Build: Design Services 4/28/2015 $ 7,064,501 *
Design-Build Amendment 1:
Additional Design Services 11/1/2016 $ 381,729 *
Design-Build Amendment 2:
Construction GMP (CSB)8/8/2017 $ 61,243,526
Direct Owner Costs Various $ 7,052,244
Percent For Art 8/8/2017 $ 760,000
To tal $ 76,760,000
* Funding previously allocated
BONDING BREAKDOWN
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City Services Building
Description Council
Date
City Services
Building
Bonding 08/08/17 $ 76,760,000
Project Budget 11/01/16 $ 74,804,729
Delta $ 1,955,271
Percent for Arts 08/08/17 $ 760,000
Direct Owners Cost: Contingency 08/08/17 $ 1,195,271
CHANGES SINCE NOVEMBER COUNCIL ACTION
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Level 1: Public Counter Services
•Finance
•Planning & Community
Development
•Public Works
Level 2: Staff & Meeting Rooms
•Housing & Economic Development
•Planning & Community Development
Level 3: Staff & Meeting Rooms
•Community &
Cultural Services
•Public Works
•Information Systems Technology
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September 2017 Construction Starts
Fall/Winter 2017 City Hall Make-Ready Work
Winter 2017 -Spring 2018 Demolition
Spring 2018 Utility Work
Spring/Summer 2018 Excavation
Summer 2018 –Summer 2019 Concrete Structure
Summer 2019 –Spring 2020 Façade & Building Interior
April 2020 Estimated Completion
Next Steps -Project Schedule
8/9/2017City of Santa Monica | City Services Building |
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UNIT COSTS
•GMP for construction is 61.24 M
•This includes 2.1 M of Construction Administration (CA)
services which are design costs
•Construction Cost is 59.1 M (includes owner
contingency)
•Unit Cost is 1178 $/ SF
8/9/2017City of Santa Monica | City Services Building |
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Project: Conrad N. Hilton Foundation
Headquarters
Location: Agoura Hills, CA
Date Completed: October 2012
Size: 22,240 SF
$/SF: $1,079
Sustainability: LEED v3 Platinum, Net-Zero
Energy
Source:
https://www.hiltonfoundation.org/news/4
1-agoura-hills-frequently-asked-questions
PRECEDENT PROJECTS
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Project: J. Craig Venter Institute
Location: La Jolla, CA
Date Completed: November 2013
Size: 44,607 SF
$/SF: $874
Sustainability: LEED v3 Platinum, Net-Zero
Energy
Source: http://www.aiatopten.org/node/495
PRECEDENT PROJECTS
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Project: Smithsonian National Museum of
African-American History & Culture
Location: Washington D.C.
Date Completed: September 2016
Size: 350,000 SF
$/SF: $1,389
Sustainability: LEED v3 Gold
Source:
https://smithsoniancampaign.org/sites/defa
ult/files/unit-
toolkits/NMAAHC_61215_FINAL%20TOOLKI
T.pdf
PRECEDENT PROJECTS
REFERENCE:
CONTRACT NO. 10526 & 2nd
AMENDMENT TO CONTRACT
NO. 10051
(CCS)